CAIRO- Egypt hopes its imminent inclusion in the BRICS bloc of developing nations will help ease its shortage of foreign currency and attract new investment, but analysts say it may take time before any benefits appear.
The bloc, which includes Brazil, Russia, India, China and South Africa, on Thursday invited Egypt and five other countries to join, and Egypt immediately welcomed the offer.
“I appreciate Egypt being invited to join BRICS and look forward to coordinating with the group to achieve its goals in supporting economic cooperation,” President Abdel-Fattah al-Sisi said soon after being invited.
Egypt over the past few years has been mired in an economic crisis aggravated by the coronavirus pandemic and Russia’s invasion of Ukraine.
Its currency has fallen by half in 18 months, annual inflation surged to a record 36.5 percent in July, and a borrowing spree over the last eight years has made external debt repayments increasingly onerous. The dollar crunch has forced it to defer payments for wheat imports.
“The group’s aim of reducing dollar transactions will lower the foreign currency pressure in Egypt,” the cabinet said in s statement on Thursday. Membership in the bloc’s New Development Bank (NDB), established by its members in 2015, will provide concessional funding for development, it added.
Egypt’s supply minister said in April it was discussing with China, India and Russia using their currencies for commodities, but no deal had been reached.
